Next-Gen Mazda 6 to Be Built in Japan, Casting Some Doubt on Future of Flat Rock, Michigan, Factory

The U.S. market’s supply of the mid-size Mazda 6 sedan will come from Hofu, Japan, after production of this generation ends, the automaker said in a statement. Mazda’s family sedan is currently built at the Auto Alliance International plant in Flat Rock, Michigan, under the same roof as is the Ford Mustang. Japanese production of […]

Justin Berkowitz

Jun 7, 2011

The U.S. market’s supply of the mid-size Mazda 6 sedan will come from Hofu, Japan, after production of this generation ends, the automaker said in a statement. Mazda’s family sedan is currently built at the Auto Alliance International plant in Flat Rock, Michigan, under the same roof as is the Ford Mustang. Japanese production of the 6 won’t be new—a slightly smaller version of the car is built there now, for sale in Japan and elsewhere—but the decision to shift the site of production shows the cracks in Mazda’s U.S. business. The company also referred to the 6’s replacement as Mazda’s “next mid-size car” rather than as the 6, but we read this as Mazda simply addressing a global audience; the 6 carries different names elsewhere.

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While the previous generation of the 6 both accounted for a boost in sales and helped further Mazda’s sporty image, the current car hasn’t caught on with shoppers. In the first five months of 2011, the company shifted only 13,604 examples; during the same time period, Honda flogged 120,039 Accords. In an interview earlier this year, Mazda North American Operations CEO Jim O’Sullivan told us that the 6 wouldn’t be seeing any significant changes or updates for the rest of this generation’s life. He attributed its lackluster sales to launching at the start of the global financial crisis, as well as a low level of awareness about the product. These are both no doubt accurate, but we’d add that the 6’s growth in size probably alienated fans of the previous-gen car—despite still offering very satisfying driving dynamics—while the unimpressive fuel economy of the four-cylinder model (22 mpg city/31 highway) may have cost it mainstream shoppers wowed by 10-percent-higher fuel economy from some competitive products.

This announcement raises serious questions about the future of the AAI operation. Mazda and Ford each have a 50-percent stake in the factory; with the former’s future at Flat Rock in jeopardy, the implication is the same for the the latter’s. For its part, Mazda says that it is committed to “identify[ing] potential future opportunities for the plant.” This strikes us as an unfortunately weak promise; if there were serious plans for a new product at Flat Rock on the table, we’d expect the statement to be more concrete in at least saying a decision will be made soon about which new product will be built there. A Ford spokesperson, however, was far more positive about her company’s future in Flat Rock, telling us that AAI “is a critical plant in Ford’s U.S. manufacturing footprint.” The Mustang remains a key product in both image and in profits for Ford, and we don’t imagine the company has any interest in picking up and moving the line to another factory. It’s uncertain whether Ford would have the option to buy Mazda’s stake in AAI if the latter decides not to build anything new there. We can easily imagine Ford taking the entirety of the factory and using it for . . . well, let’s not be too speculative about Ford and additional rear-wheel-drive cars.

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There’s a decent amount of Mazda history at the Flat Rock production site. The company opened the factory in 1987, and built cars there alone until Ford bought a half stake in 1992. The Mazda MX-6 and 626 were built there, as were the Ford Probe and the most recent Mercury Cougar. We hope Mazda finds a good reason to hang around, or, at the very least, Ford can step in and maintain the jobs in C/D’s beleaguered home state.